Here you will find news, views, events and information relating to real-estate in Spain.

Housing Sales Slow Dramatically in August

The Canary Islands saw an 18.8% fall in sales
The Canary Islands saw an 18.8% fall in home sales

The Canary Islands saw an 18.8% fall in sales

The number of home sales in Spain decreased dramatically in August with a 21.1% fall when compared to August 2018. When compared to July 2019, the fall is 26.1%, according to data from the INE.

This follows similar data announced by the notaries earlier this week that the housing market had collapsed in August.

Figures for August represent the worst data of 2019 and are caused by a sharp fall in both sales of new and used homes.

Specifically, in the eighth month of the year there were 6,426 sales of newly constructed homes and 28,945 of second-hand. In both cases, these are the worst numbers since last December and second-hand housing is already falling year-on-year, while the new construction holds just a 4.2% increases between January and August.

87% of sales recorded in August correspond to urban property and 13.0% to rural properties. In the case of urban, 55.7% were home sales.

The number of purchases of rustic properties fell 3.4% in August on the annual rate. Urban property sales fell 17.2%. Among urban sales, housing sales registered an annual decrease of 21.1%.

Results by Autonomous Communities

Andalusia was the community where the most home sales were closed in August (7,278), followed by Catalonia (5,921), Valencia (5,365) and Madrid (4,899).

In August, the total number of property sales registered in the property records per 100,000 inhabitants reached its highest values in La Rioja (727), Castilla y León (550) and Aragón (538).

La Rioja (9.9%), Cantabria (9.7%) and Galicia (4.6%) recorded the highest annual variation rates.

Meanwhile, Navarra (–30.3%), the Canary Islands (–18.8%) and Extremadura (–17.8%) showed the most significant annual falls.

Based on the sales of registered homes, the communities with the highest number of transmissions per 100,000 inhabitants were Valencia (136), Andalusia (110) and the Balearic Islands (109).

For the first time in recent years all autonomous communities showed negative annual rates on the number of home sales in August. The smallest decreases occurred in Galicia (–8.6%), Castilla y León (–13.7%) and Catalonia (–14.9%).

On the other hand, Extremadura (–42.7%), the Canary Islands (–41.2%) and Navarra (–39.4%) registered the greatest decreases.


Cost of Renting a Home Still Rising

Cost of Renting a Home Still Rising
Rental prices in Spain grew 0.9% in Q3

Cost of renting in Spain grew 0.9% in Q3

At the end of the third quarter of 2019, the average cost of renting a home in Spain was 10.9 euros per square metre per month, a quarterly increase of 0.9%. When comparing to the same period last year prices have increased by 5.2%, according to a report from idealista. Rents in the two large markets of Madrid (+2.2%) and Barcelona (+1%) continue to increase on a quarterly basis due to lack of supply.

Fernando Encinar, head of studies at idealista, says “the data shows that both Madrid and Barcelona, the cities with the greatest mismatch between supply and demand, have risen again for the second consecutive quarter, while in the rest of the country where there are no tensions, prices have remained stable or even fallen.”

Prices in Autonomous Communities

Over the summer months rental prices fell in six communities. The biggest drop was in the Balearic Islands where prices fell by 9.8% when compared to the previous quarter. This was followed by falls in Extremadura (-3.4%) and Castilla y León (-1%). The average cost per square metre per month in Andalusia fell by 0.3% to 8.2 €/m². However, year-on-year prices in Andalusia increased 5.6%.

Madrid and Catalunya are the most expensive communities to rent a home (with 15.1 euros p/m² and 14.5 euros p/m² respectively). They are followed by the Balearic Islands (12.6 euros p/m²), Euskadi (11.7 euros p/m²) and the Canary Islands (10 euros p/m²).

The cheapest communities to rent a property are Extremadura (5 euros p/m²), Castilla La Mancha (5.3 euros p/m²) and La Rioja (6.4 euros p/m²).


19 provinces saw prices fall over the last 3 months. The biggest decrease in rental prices is that experienced in Ourense, where owners now ask for 10.6% less for renting their homes. This is followed by falls in the Balearic Islands (-9.8%), Cuenca (-6.4%), Badajoz (-4.1%) and Huelva (-3.8%).

The biggest increases in rental prices were seen in the province of Lugo, with an increase of 5.9%. Then there are Segovia (4.9%), Jaén (4.9%), Alicante and Ávila (4.7% in both cases). In the province of Lleida, the massive incorporation of temporary rental homes in the Baqueira area has caused an unusual increase which is without statistical value during this quarter (19.7%).

The ranking of the most expensive provinces is headed by Barcelona (15.3 euros p/m² per month), Madrid (15.1 euros p/m²) and Guipúzcoa (13.4 euros p/m²). Cuenca is the most economical province to rent a home, with 4.7 euros p/m² per month. It is followed by Cáceres (4.8 euros p/m²), Jaén (4.8 euros p/m²), Ciudad Real, Zamora, Teruel and Ourense (4.9 euros p/m² in all four cases).

The average cost per square metre in Malaga is 9.4 euros per month. This is 0.3% higher than the previous quarter. On an annual basis the variation is +1.4%.


Over 10 million Tourists Chose Spain in August

Over 2 million Brits arrived in August
Over 2 million Brits arrived in Spain in August

Over 2 million Brits arrived in August

In August, Spain received a massive 10.1 million international tourists, 0.5% lower than in the same month last year.

The UK was once again the main source of those tourists. Almost 2.2 million Brits chose Spain for their August holidays, representing 21.5% of the total, but a decrease of 3.1% when compared to August last year.

France and Germany also contributed a large chunk of the visitors with 2 million French (4.6% lower than last year) and 1.1 million Germans (10.7% lower than last year).

Among other countries to show significant growth in the number of visitors to Spain were Ireland (+21%), Switzerland (+10.6%) and the United States(+9.2%).

Destination by Autonomous Community

Catalonia was the main destination for tourists in August, with 23.3% of the total. It was followed by the Balearic Islands (22.3%) and Andalusia (13.8%), according to data from the INE.

Nearly 2.4 million tourists visited Catalonia in August, 3.1% less than in the previous year. The main countries of residence of the visitors to this community are France (with 30.1% of the total) and the United Kingdom (11.3%).

The number of tourists visiting the Balearic Islands decreased by 1.8% and was close to 2.3 million. 28.7% came from the United Kingdom and 26.1% from Germany.

The third most popular destination community by number of tourists was Andalusia, with almost 1.4 million tourists, an annual decrease of 1.9%. The United Kingdom is the main country of origin for these visitors (with 23.4% of the total), followed by France (16.7%).

In the rest of the communities the number of tourists increased by 8.1% in the Valencia Region and 6.9% in the Community of Madrid. Meanwhile, tourist numbers dropped 5.3% in the Canary Islands.

Year to Date

So far this year, international tourism to Spain has grown by 1.5% to reach 58.2 million visitors.

The main emitting countries so far this year are of course the UK (with 12.7 million tourists, a decrease of 1.8% when compared to the first eight months of 2018), France (with more than 8.1 million, and a decrease of 2.1%) and Germany (with more than 7.7 million tourists, very similar to the same period of 2018).

In the first eight months of 2019 the communities that received the most tourists were Catalonia (with more than 13.6 million and an increase of 0.7% over the same period of 2018), the Balearic Islands (with more than 10.1 million and a decrease of 0.2%) and the Canary Islands (with almost 8.7 million, 3.7% less).

The duration of stay for the majority of tourists in August was four to seven nights, with almost 4.4 million tourists, an annual increase of 3.2%.


House Prices Down in Third Quarter

Prices fell 0.47% in Andalusia
The average price of property fell 0.47% in Andalusia

Prices fell 0.47% in Andalusia

The average price of second-hand housing in Spain stood at 1,696 euros per square metre at the end of September. This figure represents a fall of 1.15% when compared to the previous quarter. However, when compared to Q3 in the previous year, the variation is +2.63%. On a monthly basis, the figure is 0.09% lower than in was in August.

Prices left behind the large variations we got used to seeing, both positive and negative. In recent months this has calmed and variations are smaller,” says Ferran Font, director of studies at He also thinks that political uncertainty has affected all indicators of the housing market. In addition to price, mortgages and sales also seem to be slowing.

The coming end of a Government term tends to delay decisions of great importance for professionals in the sector and for people in general. Some investments are on hold until after the elections which are coming in November. Font also suggests that other outside factors are having an effect on the market, including the prospect of a hard Brexit and the threat of an upward turn in the in Euribor.

Prices by Community

In the third quarter of the year, the largest price increases occurred in Madrid (2.45%), the Balearic Islands (0.91%) and La Rioja (0.23%).

The largest falls were seen in Catalonia (-2.14%), Castilla-La Mancha (-1.93%) and Galicia (-1.43%).

Year-on-year, the most significant upturns came in the Balearic Islands (7.57%), Madrid (7.34%) and the Canary Islands (6.40%). Meanwhile, the largest falls took place in La Rioja (-8.32%), Cantabria (-2.68%) and Navarra (-2.38%).

The most expensive community in September 2019 was the Balearic Islands with an average price of €3,101 p/m² and the cheapest Castilla-La Mancha at €889 p/m².

In Andalusia, the average price reached €1,638 p/m², a fall of 0.47% since the previous quarter.

Prices by Province

The largest quarterly increases took place in Madrid (2.45%), Ávila (2.36%) and Álava (2.14%), while the most marked setbacks were seen in Cuenca (-4.81%), Lleida (-4.47%) and Jaén (-4.43%).

From year to year, the Balearic Islands (7.57%), Madrid (7.34%) and Cádiz (6.74%) led the positive variations. Amongst those to see prices fall, the first places went to Zamora (-13.54%), Lugo (-9.55%) and La Rioja (-8.32%).

The most expensive province was Guipúzcoa with an average price of €3,111 p/m² and the cheapest Cuenca at €693 p/m².

Provincial Capitals

Compared to June 2019, Vitoria (5.12%), Ávila (3.62%) and Girona (3.27%) saw the largest increases in the price of second-hand property for sale.

The most intense falls were seen in A Coruña (-6.01%), Lleida (-5.09%) and Tarragona (-4.08%).

In the last year, Pamplona (19.34%), Madrid (18.82%) and Girona (15.05%) were the capitals where prices increased the most. Logroño (-10.40%), Zamora (-10.14%) and Lleida (-6.69%) were the ones to record the biggest falls.

The most expensive capital was Donostia-San Sebastián (€4,792 p/m²) and the cheapest was Ávila (€1,045 p/m²).

Borrowing For Home Buying Up in July

Home borrowing increased in July, year-on-year
Home mortgages borrowing increased in July, year-on-year

Home borrowing increased in July, year-on-year

There was an increase of 13.1% in the number of new mortgages taken on homes in July, when compared to July 2018. However, the average amount of the loans taken fell by 2.5% to 121,414 euros, according to data from the INE.

The total borrowed for home loans in July reached a massive 4,048 million euros, a 10.3% increase over the previous July.

Interest Rates

The average interest rate taken for all mortgage loans (not only for housing) was 2.51% (1.2% lower than in the previous year) and the average term of the loans was 23 years. 58.1% of mortgages were taken on a variable interest rate, with 41.9% on a fixed rate.

The average interest rate at the start of the loans taken on a variable rate was 2.14% (7.3% lower than in July 2018) and 3.16% for fixed rate loans (2.8% higher).

For mortgages taken for the purchase of a home, the average interest rate was 2.56% (1% lower than in July last year) and the average loan term was 24 years. 56.3% of home mortgages were taken on a variable interest rate and 43.7% at a fixed rate.

The average interest rate at the beginning of the loan term was 2.28% for home mortgages on a variable-rate (a decrease of 3.4%) and 3.01% for fixed-rate mortgages (0.2% higher).

Results by Autonomous Communities

The communities with the highest number of new mortgages taken for a home purchase in July are Andalucía (6,786), Cataluña (5,468) and the community of Madrid (5,130).

In terms of capital borrowed the communities with the highest amounts loaned are Madrid (930.4 million euros), Catalonia (797.8 million) and Andalusia (708.3 million).

The communities with the highest annual variation in the amount of borrowed capital are Aragón (47.7%), Extremadura (42.4%) and Castilla – La Mancha (37.4%).

The communities with the highest annual variation rates in the number of new home mortgages are Extremadura (45.9%), Castilla – La Mancha (38.5%) and Castilla y León (33.9%).

On the other hand, the only communities with negative rates are Foral de Navarra (–10.7%), Madrid (–7.2%) and La Rioja (–4.9%).